WhiteFiber (WYFI), a Nasdaq-listed data center and colocation provider focused on AI and high-performance computing, said its Enovum Data Centers subsidiary has signed a long-term colocation agreement with Nscale Global Holdings, an AI infrastructure and cloud services provider, in a press release Thursday.

The shares rose 13% in after hours trading to $16.19 following news of the deal.

The agreement covers 40 megawatts (MW) of critical IT load at WhiteFiber’s NC-1 data center campus in Madison, North Carolina, with deployment planned in two 20-MW phases, the company said.

The deal represents approximately $865 million in contracted revenue over an initial 10-year term, including annual rate escalators and non-recurring installation services, but excluding electricity and certain other pass-through costs.

The data center provider was spun out of legacy miner Bit Digital (BTBT) and went public in August this year, selling 9.4 million shares in an upsized IPO to raise about $160 million in gross proceeds.

Bitcoin miners are increasingly pivoting to AI to monetize power contracts and infrastructure. Hut 8 rallied as much as 20% on Wednesday after signing a 15-year, $7 billion lease with Fluidstack for 245 MW of IT capacity at its River Bend campus.

WhiteFiber described the facility as Tier 3-equivalent and “ultra-high-density,” engineered to support up to 150 kilowatts (kW) per cabinet with fully redundant power distribution and N+1 cooling, and targeting an average power usage effectiveness of 1.3 or better.

The company said the campus is supported by a 99 MW capacity agreement with Duke Energy and that management believes the site may support up to 200 MW of total electrical supply over time, subject to infrastructure upgrades and other conditions.

WhiteFiber has invested about $150 million of equity into the NC-1 site and is in advanced discussions with lenders on financing options for construction and broader growth. It expects to formalize a credit facility in early Q1 2026 and is evaluating potential credit enhancement structures.

“This agreement validates our strategy to engineer NC-1 to meet hyperscaler specifications and support the most advanced AI workloads," WhiteFiber CEO Sam Tabar, said in the release.

"We look forward to working closely with Nscale as we plan for the potential expansion of this deployment toward double its initial size by the end of 2027,” he added.

Read more: Hut 8 stock surges 20% on Fluidstack AI data center deal